Italy 05-504

70 FR 23094, May 4, 2005

DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-825]

Stainless Steel Sheet and Strip in Coils From Italy: Final Results
of the Full Sunset Review of the Countervailing Duty Order

AGENCY: Import Administration, International Trade Administration,
Department of Commerce.

SUMMARY: On June 1, 2004, the Department of Commerce ("the Department")
initiated a sunset review of the countervailing duty ("CVD") order on
stainless steel sheet and strip in coils ("SSSS") from Italy pursuant
to section 751(c) of the Tariff Act of 1930, as amended ("the Act").
See Initiation of Five-Year (Sunset) Reviews, 69 FR 30874 (June 1, 2004).
On the basis of a notice of intent to participate and an adequate
substantive response filed on behalf of the interested parties, the
Department conducted a full (240-day) sunset review. As a result of
this review, the Department finds that revocation of the CVD order
would likely lead to continuation or recurrence of subsidies at the
levels indicated in the "Final Results of Review" section of this notice.

EFFECTIVE DATE: May 4, 2005.

FOR FURTHER INFORMATION CONTACT: Hilary Sadler, Esq., Import
Administration, International Trade Administration, U.S. Department
of Commerce, 14th Street and Constitution Avenue, NW., Washington,
DC 20230; telephone: (202) 482-4340.

SUPPLEMENTARY INFORMATION:

Background

On June 1, 2004, the Department initiated a sunset review of the
CVD order on SSSS from Italy pursuant to section 751(c) of the Act. See
Initiation of Five-Year (Sunset) Reviews, 69 FR 30874 (June 1, 2004).
On December 29, 2004, the Department published the preliminary results
of the full sunset review of the CVD on SSSS from Italy. See Notice of
Preliminary Results of Full Sunset Review: Stainless Steel Sheet and
Strip in Coils from Italy ("preliminary sunset review results"), 69
FR 78091 (December 29, 2004) and the accompanying Issues and Decision
Memorandum for the Full Sunset Review of the Countervailing Duty Order
on Stainless Steel Sheet and Strip in Coils from Italy: Preliminary
Results ("preliminary results decision memorandum") dated December
29, 2004.\1\ In our preliminary sunset review results, we found that
benefits from the following programs would likely continue or recur
were the order revoked:
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\1\ For a full discussion of the history of this order prior to
the preliminary results of this sunset review, see the December 29,
2004 preliminary results decision memorandum.
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(1) Law 675/77;
(2) Law 451/94 Early Retirement Benefits; and
(3) European Social Fund.
On February 8, 2005, the Department received a joint case brief
from the Government of Italy (GOI) and the European Commission (EC).
See Case Brief from the EC and the GOI re: Sunset Review of the
Countervailing Duty Order on Stainless Steel Sheet and Strip in Coils
from Italy (February 8, 2005) including separate GOI and EC
Attachments. The Department also received a case brief from
ThyssenKrupp Acciai Speciali Terni, S.p.A. ("TKAST") (formerly Acciai
Speciali Terni, S.p.A.) in a timely manner. See Case Brief from TKAST
re: Stainless Steel Sheet and Strip in Coils from Italy (Sunset)
(February 8, 2005). The Department did not receive a case brief from
the domestic interested parties but did receive a rebuttal brief to the
case briefs submitted by the GOI, EC and TKAST. See Rebuttal Brief from
Petitioners re: Sunset Review of the Countervailing Duty Order on
Stainless Steel Sheet and Strip in Coils from Italy (February 14,
2005).

Scope of the Order

The product covered by this order is certain stainless steel sheet
and strip in

[[Page 23095]]

coils. Stainless steel is an alloy steel containing, by weight, 1.2
percent or less of carbon and 10.5 percent or more of chromium, with or
without other elements. The subject sheet and strip is a flat-rolled
product in coils that is greater than 9.5 mm in width and less than
4.75 mm in thickness, and that is annealed or otherwise heat treated
and pickled or otherwise descaled. The subject sheet and strip may also
be further processed (e.g., cold-rolled, polished, aluminized, coated,
etc.) provided that it maintains the specific dimensions of sheet and
strip following such processing.
The merchandise subject to these orders is classified in the
Harmonized Tariff Schedule of the United States ("HTSUS") at the
following subheadings: 7219.13.00.30, 7219.13.00.50, 7219.13.00.70,
7219.13.00.80, 7219.14.00.30, 7219.14.00.65, 7219.14.00.90,
7219.32.00.05, 7219.32.00.20, 7219.32.00.25, 7219.32.00.35,
7219.32.00.36, 7219.32.00.38, 7219.32.00.42, 7219.32.00.44,
7219.33.00.05, 7219.33.00.20, 7219.33.00.25, 7219.33.00.35,
7219.33.00.36, 7219.33.00.38, 7219.33.00.42, 7219.33.00.44,
7219.34.00.05, 7219.34.00.20, 7219.34.00.25, 7219.34.00.30,
7219.34.00.35, 7219.35.00.05, 7219.35.00.15, 7219.35.00.30,
7219.35.00.35, 7219.90.00.10, 7219.90.00.20, 7219.90.00.25,
7219.90.00.60, 7219.90.00.80, 7220.12.10.00, 7220.12.50.00,
7220.20.10.10, 7220.20.10.15, 7220.20.10.60, 7220.20.10.80,
7220.20.60.05, 7220.20.60.10, 7220.20.60.15, 7220.20.60.60,
7220.20.60.80, 7220.20.70.05, 7220.20.70.10, 7220.20.70.15,
7220.20.70.60, 7220.20.70.80, 7220.20.80.00, 7220.20.90.30,
7220.20.90.60, 7220.90.00.10, 7220.90.00.15, 7220.90.00.60, and
7220.90.00.80. Although the HTSUS subheadings are provided for
convenience and customs purposes, the Department's written description
of the merchandise covered by these orders is dispositive.
Excluded from the scope of these orders are the following: (1)
Sheet and strip that is not annealed or otherwise heat treated and
pickled or otherwise descaled; (2) sheet and strip that is cut to
length; (3) plate (i.e., flat-rolled stainless steel products of a
thickness of 4.75 mm or more); (4) flat wire (i.e., cold-rolled
sections, with a prepared edge, rectangular in shape, of a width of not
more than 9.5 mm); and (5) razor blade steel. Razor blade steel is a
flat-rolled product of stainless steel, not further worked than cold-
rolled (cold-reduced), in coils, of a width of not more than 23 mm and
a thickness of 0.266 mm or less, containing, by weight, 12.5 to 14.5
percent chromium, and certified at the time of entry to be used in the
manufacture of razor blades. See Chapter 72 of the HTSUS, "Additional
U.S. Note" 1(d).
In response to comments by interested parties the Department has
determined that certain specialty stainless steel products are also
excluded from the scope of these orders. These excluded products are
described below:
Flapper valve steel is defined as stainless steel strip in coils
containing, by weight, between 0.37 and 0.43 percent carbon, between
1.15 and 1.35 percent molybdenum, and between 0.20 and 0.80 percent
manganese. This steel also contains, by weight, phosphorus of 0.025
percent or less, silicon of between 0.20 and 0.50 percent, and sulfur
of 0.020 percent or less. The product is manufactured by means of
vacuum arc remelting, with inclusion controls for sulphide of no more
than 0.04 percent and for oxide of no more than 0.05 percent. Flapper
valve steel has a tensile strength of between 210 and 300 ksi, yield
strength of between 170 and 270 ksi, plus or minus 8 ksi, and a
hardness (Hv) of between 460 and 590. Flapper valve steel is most
commonly used to produce specialty flapper valves in compressors.
Also excluded is a product referred to as suspension foil, a
specialty steel product used in the manufacture of suspension
assemblies for computer disk drives. Suspension foil is described as
302/304 grade or 202 grade stainless steel of a thickness between 14
and 127 microns, with a thickness tolerance of plus-or-minus 2.01
micros, and surface glossiness of 200 to 700 percent Gs. Suspension
foil must be supplied in coil widths of not more than 407 mm and with a
mass of 225 kg or less. Roll marks may only be visible on one side,
with no scratches of measurable depth. The material must exhibit
residual stresses of 2 mm maximum deflection and flatness of 1.6 mm
over 685 mm length.
Certain stainless steel foil for automotive catalytic converters is
also excluded from the scope of these orders. The stainless strip in
coils is a specialty foil with a thickness of between 20 and 110
microns used to produce a metallic substrate with a honeycomb structure
for use in automotive catalytic converters. The steel contains, by
weight, carbon of no more than 0.030 percent, silicon of no more than
1.0 percent, manganese of no more than 1.0 percent, chromium of between
19 and 22 percent, aluminum of no less than 5.0 percent, phosphorus of
no more than 0.045 percent, sulfur of no more than 0.03 percent,
lanthanum of less than 0.002 or greater than 0.05 percent, and total
rare earth elements of more than 0.06 percent, with the balance iron.
Permanent magnet iron-chromium-cobalt alloy stainless strip is also
excluded from the scope of these orders. This ductile stainless steel
strip contains, by weight, 26 to 30 percent chromium and 7 to 10
percent cobalt, with the remainder of iron, in widths 228.6 mm or less,
and a thickness between 0.127 and 1.270 mm. It exhibits magnetic
remanence between 9,000 and 12,000 gauss, and a coercivity of between
50 and 300 oersteds. This product is most commonly used in electronic
sensors and is currently available under proprietary trade names such
as "Arnokrome III." \2\
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\2\ "Arnokrome III" is a trademark of the Arnold Engineering.
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Certain electrical resistance alloy steel is also excluded from the
scope of these orders. This product is defined as a non-magnetic
stainless steel manufactured to American Society of Testing and
Materials (ASTM) specification B344 and containing, by weight, 36
percent nickel, 18 percent chromium, and 46 percent iron, and is most
notable for its resistance to high-temperature corrosion. It has a
melting point of 1390 degrees Celsius and displays a creep rupture
limit of 4 kilograms per square millimeter at 1000 degrees Celsius.
This steel is most commonly used in the production of heating ribbons
for circuit breakers and industrial furnaces, and in rheostats for
railway locomotives. This product is currently available under
proprietary trade names, such as "Gilphy 36." \3\
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\3\ "Gilphy 36" is a trademark of Imphy, S.A.
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Certain martensitic precipitation-hardenable stainless steel is
also excluded from the scope of these orders. This high-strength,
ductile stainless steel product is designated under the Unified
Numbering System (UNS) as S45500-grade steel, and contains, by weight,
11 to 13 percent chromium and 7 to 10 percent nickel. Carbon,
manganese, silicon and molybdenum each comprise, by weight, 0.05
percent or less, with phosphorus and sulfur each comprising, by weight,
0.03 percent or less. This steel has copper, niobium, and titanium
added to achieve aging and will exhibit yield strengths as high as 1700
Mpa and ultimate tensile strengths as high as 1750 Mpa after aging,
with elongation percentages of 3 percent of less in 50 mm. It is
generally provided in thicknesses between 0.635 and 0.787 mm, and in
widths of 25.4

[[Page 23096]]

mm. This product is most commonly used in the manufacture of television
tubes is currently available under proprietary trade names, such as
"Durphynox 17." \4\
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\4\ "Durphynox 17" is a trademark of Imphy, S.A.
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Finally, three specialty stainless steels typically used in certain
industrial blades and surgical and medical instruments are also
excluded from the scope of these orders. These include stainless steal
strip in coils used in the production of textile cutting tools (e.g.,
carpet knives).\5\ This steel is similar to AISI grade 420 but
containing, by weight, 0.5 to 0.7 percent of molybdenum. The steel also
contains, by weight, carbon of between 1.0 and 1.1 percent, sulfur of
0.020 percent or less, and includes between 0.20 and 0.30 percent
copper and between 0.20 and 0.50 percent cobalt. This steel is sold
under proprietary names, such as "GIN4 Mo." The second excluded
stainless steel strip in coils is similar to AISI 420-J2 and contains,
by weight, carbon of between 0.62 and 0.70 percent, silicon of between
0.20 and 0.50 percent, manganese of between 0.45 and 0.80 percent,
phosphorus of no more than 0.025 percent, and sulfur of no more than
0.020 percent. This steel has a carbide density on average of 100
carbide particles per 100 square microns. An example of this product is
"GIN5" steel. The third specialty steel has a chemical composition
similar to AISI 420 F, with carbon of between 0.37 and 0.43 percent,
molybdenum of between 1.15 and 1.35 percent, but lower manganese of
between 0.20 and 0.80 percent, phosphorus of no more than 0.025
percent, silicon of between 0.20 and 0.50 percent, and sulfur of no
more than 0.020 percent. This product is supplied with a hardness of
more than Hv 500 guaranteed after customer processing, and is supplied
as, for example, "GIN6". "GIN4 Mo," " GIN5" and "GIN6" are the
proprietary grades of Hitachi Metals America, Ltd.
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\5\ This list of uses is illustrative and provided for
descriptive purposes only.
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Analysis of Comments Received

All issues raised in this review are addressed in the Issues and
Decision Memorandum ("Decision Memorandum") from Ronald K. Lorentzen,
Acting director, Office of Policy, Import Administration, to Joseph A.
Spetrini, Acting Assistant Secretary for Import Administration, dated
April 27, 2005, which is hereby adopted by this notice. The issues
discussed in the accompanying Decision Memorandum include the
likelihood of continuation or recurrence of countervailable subsidies
and the net countervailable subsidy likely to prevail were the order
revoked. Parties can find a complete discussion of all issues raised in
this review and the corresponding recommendations in this public
memorandum which is on file in the Central Records Unit, room B-099, of
the main Commerce building. In addition, a complete version of the
Decision Memorandum can be accessed directly on the Web at https://enforcement.trade.gov/frn
, under the heading "May 2005." The paper copy and

electronic version of the Decision Memorandum are identical in content.

Final Results of Review

We determine that revocation of the countervailing duty order on
SSSS from Italy would be likely to lead to continuation or recurrence
of countervailable subsidies at the rate listed below:

------------------------------------------------------------------------
Net countervailable subsidy
Producer/exporters (percent)
------------------------------------------------------------------------
TKAST..................................... 0.73
Arinox.................................... de minimis.
All Others................................ 0.73
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Notification Regarding Administrative Protective Order

This notice also serves as the only reminder to parties subject to
administrative protective order ("APO") of their responsibility
concerning the return or destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305 of the
Department's regulations. Timely notification of the return or
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and terms
of an APO is violation which is subject to sanction.
We are issuing and publishing the results and notice in accordance
with sections 751(c), 752, and 777(i)(1) of the Act.

Dated: April 27, 2005.
Barbara E. Tillman,
Acting Assistant Secretary for Import Administration.

[FR Doc. 05-8910 Filed 5-3-05; 8:45 am]